🕐14.07.14 - 13:27 Uhr
ASANKO GOLD COMPLETES DEBT FINANCING AGREEMENTS
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Re: News Release - Monday, July 14, 2014
Asanko Gold Completes Debt Financing Agreements
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Vancouver, British Columbia, July 14, 2014 - Asanko Gold Inc.
("Asanko"
or the "Company") (TSX, NYSE MKT: AKG) is pleased to announce the
execution of amended definitive agreements for a US$150 million secured
project debt facility with a special purpose vehicle of RK Mine Finance
Trust I ("Red Kite").
The terms of the amended definitive agreements,
originally announced on April 15, 2014, are substantially similar to
the Definitive Senior Facilities Agreement that Asanko announced on
October 24, 2013 for its Esaase Project with the debt provided under
the amended agreement now to be utilized for developing Phase 1 of the
Asanko Gold Mine (the "Project" or "AGM").
Phase 1 envisages the
construction of the Obotan Project that was acquired by Asanko during
the takeover of PMI Gold earlier this year.
Combined with Asankos cash on hand of US$2311 million, this debt
facility fully finances the Project through to production.
Asanko will
be requesting a first utilization of the Project Facility of US$20
million before July 24, 2014 once initial administrative conditions
precedent are met.
The next draw down requirement is for an additional
US$40 million to be requested by December 22, 2014.
The balance of the
funds will be drawn by the Company on an as-needed basis during 2015.
The Agreement provides for two loan facilities: a US$130 million loan
facility (the "Project Facility") and a US$20 million cost overrun
facility (the "Overrun facility"), the details of which are outlined
below.
The Overrun facility is provided as an option available to the
Company, should it be required.
Performance under the amended
agreement will be fully secured by the assets of the Companys Ghanaian
subsidiaries and will be guaranteed by the Company until Project
completion.
There are no gold hedging provisions, cash sweep
requirements or other restrictions usually associated with traditional
project finance facilities of this nature, and Asanko will not be
restricted from pursuing its growth strategy.
Project Facility Details (US$130 million):Overrun Facility Details
(US$20 million):Offtake Agreement Details:Enquiries:
For further information please visit www.asanko.com or contact:
Alex Buck, Manager - Investor Relations
Telephone: +44-7932-740-452
Email:
Greg McCunn, Chief Financial Officer
Telephone: +1-778-729-0604
Email:
General enquiries:
Notes:About Asanko Gold Inc.
Asankos vision is to become a mid-tier gold mining company that
maximizes value for all its stakeholders.
Asankos flagship project is
the fully financed, multi-million ounce Asanko Gold Mine Project
located in Ghana, West Africa.
Asanko is managed by highly skilled and successful technical,
operational and financial professionals.
The Company is strongly
committed to the highest standards for environmental management, social
responsibility, and health and safety for its employees and neighboring
communities.
About RK Mine Finance
RK Mine Finance provides mining companies with project financing and
metal off-take agreements for initiation or expansion of mine
production and is part of the Red Kite group.
Red Kite operates across
the global metals industry from offices in Bermuda, Hong Kong, London,
New York, Shanghai and Sydney.
Investors in Red Kite funds include
college endowments, foundations, family offices, pensions and other
institutional investors.
Contact:
Grant Gilmour - Portfolio Manager
Telephone: +44 207 920 6185
Forward-Looking and other Cautionary Information
This release includes certain statements that may be deemed
"forward-looking statements".
All statements in this release, other
than statements of historical facts, that address estimated resource
quantities, grades and contained metals, possible future mining,
exploration and development activities, are forward-looking statements.
Although the Company believes the forward-looking statements are based
on reasonable assumptions, such statements should not be in any way
construed as guarantees of future performance and actual results or
developments may differ materially from those in the forward-looking
statements.
Factors that could cause actual results to differ
materially from those in forward-looking statements include market
prices for metals, the conclusions of detailed feasibility and
technical analyses, lower than expected grades and quantities of
resources, mining rates and recovery rates and the lack of availability
of necessary capital, which may not be available to the Company on
terms acceptable to it or at all.
The Company is subject to the
specific risks inherent in the mining business as well as general
economic and business conditions.
For more information on the Company,
Investors should review the Companys annual Form 20-F filing with the
United States Securities Commission and its home jurisdiction filings
that are available at www.sedar.com.
Neither Toronto Stock Exchange nor the Investment Industry Regulatory
Organization of Canada accepts responsibility for the adequacy or
accuracy of this release.
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